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SJR105.....................................................by STATE AFFAIRS
BOND BANK AUTHORITY - COLLEGES/UNIVERSITIES - Proposes an amendment to the
Constitution of the State of Idaho to provide that a state university,
state college or state professional-technical school shall be defined as a
municipality for purposes of participating in the municipal bond bank
authority.
03/07 Senate intro - 1st rdg - to printing
03/08 Rpt prt - to St Aff
03/08 Rpt out - rec d/p - to 2nd rdg
03/11 2nd rdg - to 3rd rdg
Rls susp - PASSED - 30-0-5
AYES -- Andreason, Brandt, Bunderson, Burtenshaw, Cameron,
Darrington, Deide, Frasure, Geddes, Goedde, Hawkins, Hill, Ipsen,
Keough, King-Barrutia, Little, Lodge, Marley, Noh, Richardson, Risch,
Sandy, Schroeder, Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler,
Williams
NAYS -- None
Absent and excused -- Boatright, Branch(Bartlett), Davis, Dunklin,
Ingram
Floor Sponsor - Sandy
Title apvd - to House
03/12 House intro - 1st rdg - to St Aff
03/13 Rpt out - rec d/p - to 2nd rdg
03/14 2nd rdg - to 3rd rdg
03/15 To St Aff
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE JOINT RESOLUTION NO. 105
BY STATE AFFAIRS COMMITTEE
1 A JOINT RESOLUTION
2 PROPOSING AN AMENDMENT TO SECTION 2A, ARTICLE VIII, OF THE CONSTITUTION OF THE
3 STATE OF IDAHO, RELATING TO THE MUNICIPAL BOND BANK AUTHORITY TO PROVIDE
4 THAT A STATE UNIVERSITY, STATE COLLEGE OR STATE PROFESSIONAL-TECHNICAL
5 SCHOOL SHALL BE DEFINED AS A MUNICIPALITY FOR PURPOSES OF PARTICIPATING IN
6 THE BOND BANK AUTHORITY; STATING THE QUESTION TO BE SUBMITTED TO THE ELEC-
7 TORATE; DIRECTING THE LEGISLATIVE COUNCIL TO PREPARE THE STATEMENTS
8 REQUIRED BY LAW; AND DIRECTING THE SECRETARY OF STATE TO PUBLISH THE
9 AMENDMENT AND ARGUMENTS AS REQUIRED BY LAW.
10 Be It Resolved by the Legislature of the State of Idaho:
11 SECTION 1. That Section 2A, Article VIII, of the Constitution of the
12 State of Idaho be amended to read as follows:
13 SECTION 2A. MUNICIPAL BOND BANK AUTHORITY. (1) Notwithstanding
14 the provisions of subsection (1) of Section 2 of Article VIII, the
15 legislature may enact laws authorizing the state to establish a bond
16 bank authority to purchase the bonds, notes or other obligations of a
17 municipality issued or undertaken for any purpose authorized by law
18 and to lend money to a municipality with such loans to be secured by
19 bonds, notes or other obligations of the municipality issued or
20 undertaken as authorized by law. To enable the authority to obtain
21 funds to purchase municipal bonds, notes or other obligations or to
22 make loans to municipalities, the legislature may enact laws autho-
23 rizing the bond bank authority to:
24 (a) Issue revenue bonds, notes or other obligations payable
25 from or secured by bonds, notes or other obligations of one or
26 more municipalities;
27 (b) Pledge or otherwise obligate, for and in the name and on
28 behalf of the state as its agent and instrumentality, specific
29 funds or revenues of the state, as a source of payment or secu-
30 rity for bonds, notes or other obligations issued by the author-
31 ity, with such priority over other uses of such funds or reve-
32 nues as the authority shall determine, in accordance with law,
33 to be necessary or appropriate;
34 (c) Establish debt service reserve funds or other reserve
35 funds;
36 (d) Obtain private credit enhancement for bonds, notes or other
37 obligations issued by the authority;
38 (e) Establish a revolving loan program to purchase municipal
39 bonds, notes or other obligations or to lend money to municipal-
40 ities;
41 (f) Invest moneys held by the authority, as proceeds or to pay
42 or secure bonds, notes or other obligations issued by the
43 authority, in such securities or obligations as are described in
2
1 the indenture, trust agreement or other instrument providing for
2 the issuance of the bonds, notes or other obligations;
3 (g) Invest any moneys held by the authority, in excess of funds
4 described in paragraph (f) of this subsection, in any securities
5 or other obligations in which a trustee may invest as provided
6 by law;
7 (h) Take any other actions and enter into such other contracts
8 and agreements as it may determine to be necessary or appropri-
9 ate to accomplish the purposes of a bond bank authority or this
10 section.
11 (2) To provide for the sale of municipal bonds, notes or other
12 obligations to the authority and for the issuance of municipal bonds,
13 notes or other obligations for purchase by the authority or as secu-
14 rity for loans from the authority, the legislature may enact laws
15 authorizing a municipality, in addition to any other powers munici-
16 palities may have, and without regard to the restrictions or require-
17 ments that might otherwise apply under the laws of this state, but
18 subject to the requirements of Section 3 of Article VIII, and any
19 other limitations imposed upon municipalities by the Constitution of
20 the State of Idaho, to:
21 (a) Issue bonds, notes or other obligations for sale to or as
22 security for loans received from the authority, with such inter-
23 est rate, maturity, redemption, security, remedies and other
24 terms as the municipality may agree with the authority;
25 (b) Levy and collect property taxes, fees, rates, charges and
26 other assessments to pay or secure the bonds, notes or other
27 obligations issued by the municipality for sale to or as secu-
28 rity for loans received from the authority;
29 (c) Pledge and assign to the authority or its designee property
30 taxes, fees, rates, charges and other assessments, and rights to
31 enforce the collection and application thereof, to pay or secure
32 the bonds, notes or other obligations issued by the municipality
33 for sale to or as security for loans received from the author-
34 ity;
35 (d) Take any other actions and enter into such other contracts
36 and agreements as it may determine with the authority to be nec-
37 essary or appropriate to accomplish the purposes of a bond bank
38 authority or this section.
39 (3) The provisions of Section 1 and subsection (1) of Section 2
40 of Article VIII shall not be construed as a limitation upon the
41 authority granted by this section and any debt or liability of the
42 state arising as a result of the exercise of powers authorized by
43 this section shall not be deemed a debt of the state for purposes of
44 Section 1 of Article VIII. The provisions of this section are supple-
45 mental to and shall not be construed as a repeal of or limitation
46 upon any authority of a municipality under Section 3 or 4 of Article
47 VIII, or any other authority lawfully exercisable by a municipality
48 under the Constitution and laws of this state, including, among
49 others, any authority to issue general obligation bonds, revenue
50 bonds or tax anticipation notes or to enter into contracts for or
51 undertake other financial obligations.
52 (4) For purposes of this section, "municipality" shall include
53 any state university, state college, state professional-technical
54 school, county, city, municipal corporation, school district, irriga-
55 tion district, sewer district, water district, highway district or
3
1 other special purpose district or political subdivision of the state
2 established by law.
3 SECTION 2. The question to be submitted to the electors of the State of
4 Idaho at the next general election shall be as follows:
5 "Shall Section 2A, Article VIII, of the Constitution of the State of Idaho
6 be amended to provide that a state university, state college or state
7 professional-technical school shall be defined as a municipality for purposes
8 of participating in the municipal bond bank authority?".
9 SECTION 3. The Legislative Council is directed to prepare the statements
10 required by Section 67-453, Idaho Code, and file the same.
11 SECTION 4. The Secretary of State is hereby directed to publish this pro-
12 posed constitutional amendment and arguments as required by law.
STATEMENT OF PURPOSE
RS 12201
Relating to Idaho Bond Bank Authority, to define the term
municipality to include state university, state college, and state
professional technical school in order to allow participation in
the Idaho Bond Bank.
To achieve higher bond ratings and economies of scale in lowering
bonding and interest costs paid by higher education.
FISCAL IMPACT
No general fund fiscal impact.
Financial savings on bonds issued by higher education.
Contact
Name: Senator John Sandy
Phone: 332-1305
STATEMENT OF PURPOSE/FISCAL NOTE SJR 105